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2011060610 - 16005 Los Gatos Boulevard - Staff ReportMEETING DATE: 06/06/11 ITEM NO: 1 COUNCIL AGENDA REPORT DATE: May 23, 2011 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER f SUBJECT: PLANNED DEVELOPMENT PD-07-145• AND NEGATIVE DECLARATION ND-07-148. PROJECT LOCATION: 16005 LOS GATOS BOULEVARD. PROPERTY OWNER: CHL VENTURES LP. APPLICANT: KENNETH RODRIGUES & PARTNERS. A. CONSIDER APPROVAL OF A PLANNED DEVELOPMENT TO CHANGE THE ZONE FROM CH TO CH:PD, FOR A MIXED USE DEVELOPMENT CONSISTING OF RETAIL AND OFFICE COMMERCIAL SPACE, TOWNHOMES, AND SINGLE-FAMILY RESIDENCES. APNS 529-16-025 AND 053. B. CONSIDER ADOPTION OF THE MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING PLAN. RECOMMENDATION After opening and closing the public hearing, it is recommended the Town Council: 1. Accept the Planning Commission's findings and recommendations in the form of meeting minutes (Attaclunent 3). 2. Uphold the Planning Commission's recommendation to adopt the Mitigated Negative Declaration (Attachment 3) and the Mitigation Monitoring Plan (Exhibit 28 of Attachment 5). 3. Adopt findings supporting the zone change (Attachment 9) and approve the application subject to the performance standards included in the Planned Development Ordinance and introduce the ordinance of the Town of Los Gatos effecting the Zone Change from CH to CH:PD (Attachment 10) (motion required). PREPARED BY: u fWendie R. Rooney, Director of Community Development Reviewed by: i )1 Assistant Town Manager Town Attorney Clerk Administrator Finance ommunity Development N:\DEV\TC REPORTS \2011\LosGatosB1vd16005-060611.doc Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL/PD-07-145/ND-07-148 SUBJECT: 16005 Los Gatos Boulevard June 2, 2011 ALTERNATIVES Instead of the actions above, the Council may: • Continue the project to a date certain with specific direction (motion required); or • Remand the project to the Planning Commission with specific direction (motion required); or • Move to deny the Planned Development Ordinance (motion required). BACKGROUND The applicant has been working with the Town and neighboring residents over the course of approximately three and half years to develop plans for the site. Various mixed -use and commercial development projects have been proposed and reviewed by neighborhood groups, the CDAC, and Planning Commission over this time. The proposed project scope and mix of uses has been balanced with the direction provided by the Planning Commission and concerns of the neighbors. At their January 12, 2011 meeting, the Planning Commission reviewed a plan which consisted of 23,267 square feet of commercial space with six senior BMP apartments located above retail and 29 detached single family residences (refer to Attachment 7 for a discussion of the prior project plans). At that meeting the Planning Commission continued the project and directed the applicant to address various concerns with the proposal (refer to Attachrnent 4 for a discussion of those concerns). The applicants completed significant plan revisions and the item was returned to the Planning Cormission on April 27, 2011. The plan revisions resulted in a project consisting of 16 single family residences and 9 townhomes, plus 2 commercial buildings totaling 30,790 square feet. At the Planning Commission hearing, the Commission expressed some concerns including: attractiveness of the Node (outdoor eating area), internal pedestrian circulation, loss of the potential for larger format retail development, potential use of the open space area, appropriateness of the community benefit offering, additional project traffic on Placer Oaks, and the lack of story poles for visual reference. However, after discussing the project, the majority of the Comrission ultimately found that their concerns were resolved and recommended approval of the project with a vote of 5-1 (Jensen opposed, Ogle absent). See Attachment 4 for project details. DISCUSSION A. Project Summary The applicant is requesting approval of the following: • Negative Declaration and Mitigation Monitoring Plan • Planned Development to change the zone from CH to CH:PD, for a mixed use development consisting of retail and office commercial space, townhomes, and single family residences. PAGE 3 MAYOR AND TOWN COUNCIL/PD-07-145/ND-07-148 SUBJECT: 16005 Los Gatos Boulevard June 2, 2011 A Planned Development (PD) application has been filed because the General Plan encourages projects on sites larger than 40,000 square feet to be a processed as a PD application. In addition, the Town Council has indicated that a change of land use from auto dealer to another use may go through the PD process (General Plan 2020 Policy CD-17.4). The purpose of a PD overlay zone is to provide for alternative uses and developments more consistent with site characteristics than are allowed in other zones, to create optimum quantity and use of open space, and to encourage good design. A PD is required to include only conceptual development plans, however, detailed architectural plans have been provided as part of this PD application for both the commercial buildings and residential structures. The applicant has presented detailed plans to demonstrate excellence in architecture and the quality of the project being proposed. Staff has prepared a Draft PD Ordinance for consideration. The Draft PD Ordinance indicates that the Development Review Committee (DRC) would be the approving body for the future subdivision application, and the Planning Commission would be the approving body for the future Architecture and Site applications. B. Planning Commission On April 27, 2011, the Planning Commission took the following actions: • Recommended approval of the Mitigated Negative Declaration and Mitigation Monitoring Plan to the Town Council on a 5-1 vote, • Recommended approval of the Planned Development to the Town Council on a 5-1 vote with the addition of two new Performance Standards including: prohibiting construction access from Placer Oaks Road and placement of a median island at the residential entrance from Placer Oaks to prevent left turns exiting the development (see discussion below). The applicant has made corrections to their plans since the April 27, 2011 Planning Commission hearing to address minor Technical Review Committee items and to add a triangular exiting curb island to prevent left turns onto Placer Oaks Road from the residential development (left turns from the commercial parking area were already prohibited by a proposed median island). Staff has not included a Performance Standard to add the curb island from the residential portion since the plans, which if approved would constitute the official development plan, have already been modified to provide this island. C. Public Comment Five neighbors spoke in opposition to the project at the Planning Commission public hearing (refer to Attachment 1) primarily citing concerns with additional traffic and over spill parking on Placer Oaks Road. One neighbor spoke in favor of the project, and a representative from the Los Gatos Unified School District spoke of development impacts on student enrollment at District schools. Attached is a petition from neighbors opposed to the proposed project (Attachment 11), a letter from a concerned neighbor (Attachment 12), and photos submitted by the concerned neighbor (Attachment 13). PAGE4 MAYOR AND TOWN COUNCIL/PD-07-145/ND-07-148 SUBJECT: 16005 Los Gatos Boulevard June 2, 2011 ENVIRONMENTAL ASSESSMENT An Initial Study and Mitigated Negative Declaration, consistent with California Environmental Quality Act (CEQA), were prepared for this project by the Town's enviromnental consultant, Geier and Geier Consulting, (Attachments 1 and 2 previously received). The public comment period ended on January 10, 2011. The areas of mitigation are as follows: • Air Quality • Biological Resources • Cultural Resources • Geology and Soils • Hazards and Hazardous Materials • Noise • Transportation and Traffic Changes to the project did not result in any changes in traffic generation or other areas of impact and, therefore, the Mitigated Negative Declaration was not re -circulated. CONCLUSION Throughout the review of this project, staff has expressed concerns regarding the proposed plan's consistency with General Plan Goals and Policies, and various Los Gatos Boulevard (LGB) Plan policies that encourage a stronger presence of commnercial activity on Los Gatos Boulevard, provide a dependable source of income and employment opportunities, goods and services, and cormmercial building space that could accommodate retail uses that would minimize sales tax leakage. While the revised plan presented to the Planning Commission on April 27, 2011, provides more commercial space than the previous plan, the type of space is oriented toward smaller scale neighborhood -serving retail rather than larger format retail that could address the current unmet General Plan and LGB Plan goals. Some Planning Commissioners also questioned the suitability of the smaller format retail, but were ultimately satisfied with the applicant's position that the proposed development is more feasible in this location. Staff remains concerned with the limited type and amount of retail space provided in the proposed plan. However, staff acknowledges that the proposed plan addresses many of the Planning Commission and neighborhood concerns and limits impacts to the surrounding neighborhood. Moreover, staff also recognizes the substantial time and effort that the applicant has invested into this plan. Consequently, staff recommends that the Town Council weigh the benefits of the proposed plan against the General Plan and LGB Plan goals and policies that are discussed in the April 27, 2011, Planning Commission staff report (Attachment 4). Finally, the $24,000 net Community Benefit for this project is low compared to other recent traffic -generating developments. Additions for Council consideration could include the full cost of all related intersection improvements, other bicycle/pedestrian improvements on or near PAGE 5 MAYOR AND TOWN COUNCIL/PD-07-145/ND-07-148 SUBJECT: 16005 Los Gatos Boulevard June 2, 2011 Blossom Hill Road or Los Gatos Boulevard, or any of the items set forth on the Town of Los Gatos Donation Opportunities FY 2011/2012 List of Town Needs. FISCAL IMPACT: The fiscal impacts of the proposed project have not been analyzed nor compared to the potential fiscal impact of an exclusively commercial development. The project would add 30,790 square feet of commercial space with 21,096 square feet of ground floor retail and 9,694 square feet of second floor commercial/office space on approximately 50% of the site, while the other 50% would be developed with 25 residential units. ATTACHMENTS Received Under Separate Cover 1. Mitigated Negative Declaration prepared by Geier and Geier Consulting (December 10, 2010) 2. Initial Study prepared by Geier and Geier Consulting (December 10, 2010) Received with this Report 3. Planning Commission meeting verbatim minutes of April 27, 2011 4. Report to the Planning Commission dated April 27, 2011 5. Desk Item Report to Planning Commission dated April 27, 2011 6. Planning Commission meeting verbatim minutes of January 12, 2011 7. Report to the Planning Commission dated January 12, 2011 8. Addendum Report to the Planning Commission dated January 12, 2011 9. Required Findings and Considerations 10. Draft Planned Development Ordinance (including zone change map and development plans) 11. Petition (21 pages) received June 1, 2011 (Please note that some portions of the attachment are illegible.) 12. Letter from Ada McDaniel (three pages) received June 1, 2011 13. Photos of Views from Ada McDaniel (10 pages) received June 2, 2011 Distribution cc: Kenneth Rodrigues & Partners Inc., 445 Whisman Rd., Ste. 200, Mountain View, CA 94043 CHL Ventures, 489 S. 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